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SanDisk Posts Q4 Loss On Record Revenue

Milipitas, Calif. — Flash memory maker SanDisk reported posted a $35 million loss for its fourth quarter on total revenues that climbed 55 percent to $1.16 billion, while the company reported a net income of $199 million for the year on a total revenue of $3.3 billion.

SanDisk’s fourth-quarter financial report was impacted by its purchase of M-Systems, a USB flash-drive manufacturer, which closed last November. M-Systems contributed $115 million in revenue to SanDisk’s bottom line for the fourth quarter, ended Dec. 31. In addition, acquisition costs had a negative effect on SanDisk’s 2006 financial situation. The $199 million in net income was down from the $386 million generated the previous year due to the M-System’s merger, the company reported.

SanDisk said the fourth quarter was its best ever from a financial and product shipment standpoint with its retail and OEM operations each experiencing excellent sales during that period.

The company expects sales to slip slightly during the first quarter for its retail products, but anticipates a strong OEM environment. The company is now working on the integration M-Systems and transitioning its production from 70-nanometer to 56-nanometer NAND.